RCOM, Nepal Telecom to link networks

Joji Thomas Philip, TNNMay 12, 2007, 03.01am IST

NEW DELHI: Reliance Communications (RCOM) and Nepal Telecom will soon link their networks through an optic cable fibre (OFC) between the two countries. This will allow Nepal Telecom to connect its telecom, IT and internet networks to other countries through Indian telco's FLAG undersea cable network.

For Nepal, which is largely dependant on expensive satellite communication for telecom and IT data transfer, the move would result in a significant drop in current bandwidth rates.

RCOM's move follows a recent move by BSNL and Bharti Airtel to link both countries via an OFC link. Following the deal with BSNL and Bharti, Nepal Telecom has slashed its internet rates by about a fifth.

According to sources, the deal with RCOM will give Nepal Telecom an additional 34 Mbps of bandwidth, besides allowing it to use the Indian telco's FLAG network. Sources also said that RCOM and Nepal Telecom would link their networks through the Biratnagar-Jogabani route. In fact, both companies have completed the installation of fibre circuits at the respective borders and the final linking will be carried out after the signing of the deal, sources added.

Additionally, Nepal Telecom will also be able set up its proposed superhighway for cross-country data transfer, as bandwidth from BSNL and RCOM will help reduce the costs of internet services, making it affordable and accessible for its citizens to connect to the national network.

On the other hand, Bharti Airtel connects Nepal Telecom's Bhairahawa network with its Gorakphpur optical fibre network. Similarly, BSNL provides access to Nepal Telecom through its gateways located in Birgunj and Bhairahawa. Besides, it also permits telecom and IT traffic from Nepal Telecom to ride on BSNL's undersea cable to Colombo (Sri Lanka) and subsequently to other countries.

The tie-up with BSNL has also resulted in considerable increase in Nepal Telecom's total bandwidth to 20 Mbps of upstream and 34 Mbps of downstream capacity. Prior to the deal, Nepal Telecom had an upstream capacity of 4 Mbps and 18 Mbps for downloading purposes.

For Nepal, the fibre connectivity to India is be a big boost to small companies requiring high-speed data connectivity and aid small Internet Service Providers. It will also boost Nepal's IT sector by helping those companies that have to upload huge amount of data and by providing them with web hosting facilities.

Nepal Telecom provides internet services in 59 districts. Nepal has over 50,000 internet and e-mail users and the average monthly revenue per user is Rs 1,227.